Burger King India - Whopper Of An Opportunity: Motilal Oswal Initiates Coverage
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Motilal Oswal Report
Burger King India Ltd. offers an exciting investment opportunity in the Indian quick service restaurant space on account of the following factors:
The large Indian food service Industry is expected to deliver 9% compound annual growth rate over the coming years, and QSRs are best placed to tap this opportunity.
With their high affordability, aspirational branding, higher convenience, scale benefits, and technological edge, QSRs are expected to grow at 19% CAGR over FY20-25E.
Given that the unorganised segment has been severely affected by Covid-19, QSRs can make further gains due to their better hygiene standards and well-positioned alternate channels, especially delivery.
Burger King’s 'barbell' product strategy with focus on premiumisation at the top end and value products at the entry level makes it well-placed to drive same store sales growth and margin expansion.
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